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Informist, Friday, Jul. 17, 2026

 

MUMBAI – Shares of metal companies, particularly industrial metal producers, are expected to extend their losses next week. Analysts said a stronger dollar and inflation concerns are weighing on underlying commodity prices, posing a key headwind for metal producers. Technical charts also look weak, with further profit-taking likely as investors continue to exit metal stocks following a sharp rally in 2025 and early 2026.

 

The rally in metal stocks was fuelled by investors seeking to benefit indirectly from the near-parabolic rise in industrial metal prices, driven by artificial intelligence-related demand and supply disruptions caused by the conflict in West Asia. While the war in West Asia remains a concern for supply routes, several analysts said the premiums paid for these metals were excessive, and a large part has started coming off. The premiums on metal stocks have led to stretched valuations, which have now sparked a multi-week decline in the Nifty Metal index. From November until May, the sectoral index rose more than 30%. Between Jun. 1 and Jul. 17, the index then corrected over 7%.

 

On the Multi-Commodity Exchange of India, the price of the silver futures contract is down nearly 20% over seven weeks. "Silver and copper had gained a lot when the artificial intelligence boom was driving the market, but now, even names reporting good earnings are getting sold... this, apart from the dollar index gaining strength, has been a key driver of decline in silver and copper," an analyst at a domestic brokerage said. He expects shares of Vedanta and Hindustan Zinc to remain under pressure in the near-term. 

 

Aluminium stocks are also not in favour. Incred Equities expects the price of aluminium to be vulnerable to an $800 per tonne fall, which makes the current valuations of National Aluminium Co., Vedanta Aluminium, and Hindalco Industries stretched. "We therefore remain negative on aluminium names, with a 30–40% downside risk likely," the brokerage warned. It has advised investors to sell any aluminium stock they may own.

JSW Steel reported a strong set of June quarter figures. However, the company also said it faced pricing pressure on its long products. Its shares ended just 1.4% higher despite beating analysts' estimates on net profit and revenue. Investors keenly await commentary on long products from Tata Steel and Hindalco Industries.  

 

"I expect the Nifty Metal index to correct to 12000 levels," Jatin Gedia, vice president of technical research, Teji Mandi Investment Technologies, said. A dip to 12000 levels would imply a downside of nearly 4% from current levels. Friday, Nifty Metal ended at 12436.95, down 2.0% during the week.

 

TOP HEADLINES

 

* Earnings Review: JSW Steel Q1 PAT doubles, beats Street view by wide margin
* Jindal Stainless supplies 40% steel for India's first hydrogen train
* Earnings Outlook: Higher volume, selling prices to lift Shyam Metalics Q1 PAT
* PRESS: Leading industrial houses eye Odisha's bauxite reserves
* CRISIL upgrades Vedanta's long-term rating to AA+ from AA; outlook stable
* Shyam Metalics arm starts operations at aluminium foil unit in Odisha
* GLAS Agency creates encumbrance over 54.72% shrs of Vedanta Resources, arms
* Earnings Outlook: High prices to boost JSW Steel Q1 consolidated net profit
* Gallantt Ispat CFO Pradyumna Kumar Satpathy resigns effective Aug 15
* Vedanta Oil & Gas to invest $5 bln over 3-5 yrs to up output - Anil Agarwal
* Fire in a Jain Resource unit causes demise of a labourer, injuries to others
* Steel exports to UK to near $1 bln FY27 on renegotiated FTA terms - Official
* Godawari Power shuts Chhattisgarh iron ore pellet unit temporarily
* SC OKs govt computing avg sale value for iron ore; states to save INR 3 trln
* Jain Resource provides INR-500-mln corporate guarantee for JV's loan
* Jindal Steel CEO Gautam Malhotra resigns
* Kirloskar Ferrous sets Fri as record date for final dividend payment
* IPO Alert: Gujarat Victory Forgings gets SEBI nod for fresh issue, OFS

 

Following are the resistance and support levels for key metal stocks for next week as per calculations based on their prices on the National Stock Exchange:

 

Company	Price	Week-on-week  change in %	Resistance	Support
HINDALCO INDUSTRIES LTD	944.15	(-)2.40	967.20	928.00
HINDUSTAN COPPER LTD	486.15	(-)2.50	494.00	472.10
HINDUSTAN ZINC LTD	518.35	(-)3.50	523.20	512.50
JINDAL STEEL LTD	1025.00	(-)2.50	1043.80	1009.00
JSW STEEL LTD	1237.30	(-)0.70	1259.00	1207.20
JINDAL STAINLESS LTD	737.50	3.00	746.50	727.90
NATIONAL ALUMINIUM COMPANY LTD	339.90	(-)4.20	359.60	328.20
NMDC LTD	83.22	(-)2.00	85.30	81.70
STEEL AUTHORITY OF INDIA LTD	163.04	(-)2.90	166.50	158.80
TATA STEEL LTD	185.89	(-)2.80	188.50	182.10
VEDANTA LTD	253.05	(-)7.20	262.40	245.00
Index	Levels
NIFTY METAL	12436.95	(-)2.00	12597.40	12245.50
NIFTY 50	24334.30	0.50	24535.10	23998.60
BSE SENSEX	78151.45	0.80	78888.60	76939.50

 

 

End

 

US$1 = INR 96.28

 

Reported by Eshitva Prakash

Edited by Saji George Titus

 

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